Accounting · Share Capital

Which of the following statements is correct in relation to a company issuing shares under corporate law?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1Shares can be issued at a discount to the general public without any statutory restrictions.
2An increase in authorized capital must always be confirmed by a court of law.
3The directors are generally responsible for alloting shares, subject to proper authorization.✓
4Any limited company, including a private company, may issue shares by way of a public offer.

Correct answer

The directors are generally responsible for alloting shares, subject to proper authorization.

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